Back-to-School Survey 2016

Back-to-School Survey 2016Shopping for the “Easy A”

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Copyright © 2016 Deloitte Development LLC. All rights reserved. 2

Key Insights & FindingsDeloitte’s 2016 Back-to-School Survey

Shoppers are likely to spend more this year, with early shoppers spending most but budgets vary by category

Most shoppers are heading to physical stores and their lists are largely predetermined

Parents are using digital to do their research ahead of time; shopping is a surgical strike

• Average total spend forecasted is $488• 87% report that they are likely to spend the same or more than they did last year• While clothing and school supplies still dominate back-to-school lists, computer and gadget

shoppers spend the most on tech• Those who start before August are likely to spend 26% more than those who start later

• In-store still prevails over online for back-to-school season, except for purchases of technology• 2/3 of spending for traditional categories – clothing and school supplies – will occur in store• 67% say spending is more heavily influenced by the school’s recommended list than by their

children• Nearly 1/3 will take advantage of pre-configured kits offered by the school or PTA

• More than half will utilize smartphones during the shopping journey; almost 1/3 will use tablets• 61% will research online before purchasing products in the physical store• 25% plan to use social media, mostly for transactional information versus inspiration

2016 Back-to-School SurveyCopyright © 2016 Deloitte LLP. All rights reserved. 3

Expect to spend more

32%

Expect to spend less

13%

Expect to spend the

same55%

Parents cite need for more items, expensive items, and higher prices as the reasons behind their plan to spend more

87% of parents intend to spend the same or more compared to last year

“How will your spending this year on Back-to-School items compare with what you spent last year?”

Why do you plan to spend “more”?

1. Children need more items

2. Children need more expensive items

3. Prices are generally higher

Why do you plan to spend

“less”?

Source: Deloitte in-house surveyNote: Sample size (N) = 1200

Average Anticipated 2016 Back-to-School Spend: $488

81% say their financial situation is “better” or the “same” in 2016

1. Children need fewer items

2. Household has less money

3. Fewer children in grades K-12


School supplies, clothes/shoes, and backpacks top the list of products that parents plan to buy for their children

4%

6%

9%

10%

10%

12%

13%

78%

92%

95%

Wearable technology

Printer or other computer hardware

Computer software/small accessories

Cell phone/smart phone

Tablet, e-reader

Computer

Jewelry/handbag/accessories

Backpack/book bag/lunch box accessories

Clothes/shoes

School supplies

Source: Deloitte in-house surveyNote: Sample size (N) = 1200, multi select question* Shoppers who stated that they will buy at least one of the technology items

“Please select the following product categories which you are planning to buy for your student.”

29%*

plan to spend on technology products


While clothing and school supplies still dominate back-to-school lists, computer and gadget shoppers spend the most on tech

Category spend planned for 2016 back-to-school season

Source: Deloitte in-house surveyNote: Sample size (N) = 1200; Spending on voice and mobile data plans is excluded

Categories

93% plan to buy Clothing & Accessories

Average spend $239

98% plan to buy School Supplies

Average spend $122

19% plan to buy Computers & Hardware

Average spend $456

20% plan to buy Electronic Gadgets

Average spend $286


Spending breakdown by category

Average spend (by category buyer) planned for 2016 back-to-school season

Source: Deloitte in-house surveyNote: Sample size (includes only respondents who will purchase the above mentioned category or item)

$55

$81

$84

$228

$209

$210

$255

$149

$158

$546

Backpack/book bag/lunch boxaccessories

School supplies


Clothes/shoes

Wearable technology

Cell phone/smart phone

Tablet, e-reader



Computer

Clothing & Accessories$239

$122

School Supplies

Electronic Gadgets$286

Computers & Hardware$456

Categories Items


2/3 of school supply shoppers will buy in a store; more than 1/3 of computer and hardware shoppers will purchase online

In-store still prevails for back-to-school season, but channel varies by category

Avg. B2S spending by channel

$106

Undecided*

?

$109

Online

$273

In-store

*Undecided (In-store/Online)


Average spending by channel

$106

Undecided*

?

$109

Online

$273

In-store

*Undecided (In-store/Online)

63%19%

18%

Clothing & accessories School supplies

Computers & hardware Electronic gadgets

40%

32%

28%35%

35%

30%

66%

14%

20%

$239

$286$456

$122

Average consumer spending within category

In-store Online Undecided (In-store/Online)

n = 234n = 230

n = 1110 n = 1174


Most popular back-to-school items are usually purchased in a brick-and-mortar store

“Please select the following product categories which you are planning to buy for your student.”

Source: Deloitte in-house surveyNote: Sample size (N) = 1200, multi select question

27%

33%

33%

35%

39%

42%

48%

57%

59%

64%

71%

38%

36%

40%

43%

34%

29%

22%

20%

20%

19%

11%

34%

31%

26%

22%

27%

29%

30%

23%

21%

18%

18%

Tablet, e-reader

Computer – desktop/laptop/notebook

Wearable technology

Voice and data phone plans (monthly)




Backpack/book bag/lunch box accessories

Cell phone/smartphone

Clothes/shoes

School supplies: Paper, pencils, books, etc.

In-store Online Undecided (In-store/Online)


Shoppers that start early expect to spend more than those who wait


“When are you likely to begin your Back-to-School shopping?”

July

0%

September OctoberAugustEarlier than July

7%

Early

in J

uly

18%La

ter

in J

uly

33%

Early

in A

ugus

t

34%

Late

r in

Aug

ust

8%

1%

58% will begin shopping before August

$692 $619 $457 $430 $394 $404Average Spend

Shoppers who start before August are likely to spend 26% more than late starters


Spending on computers & hardware peak earlier in the season, whereas clothing peaks late

Source: Deloitte in-house survey

Percentage represents the spend distribution (across categories) for the given time period

Spending across categories by timing of back-to-school season

37%40%

48% 47%

56%

44%

26%

21% 15% 15% 17%

14%15% 16%

8%11%

4%

22%

21%

22%

28%25%

22%

19%

Earlier than July Early in July Later in July Early in August Late in August September

Clothing andAccessory

Computers andrelated

ElectronicGadgets

SchoolItems/Supplies


Back-to-school shopping is highly influenced by school recommendations

67%

65%

36%

31%

My shopping is influenced more by theschool's recommended products than my

child's requests

I plan to shop at different points throughoutthe summer to take advantage of deals

The shopping season is less important tomy family because we replenish school

supplies throughout the year

I’m buying fewer traditional school supplies because my child is using more digital

technologies

“Please indicate your level of agreement with the following statements (% who agree or somewhat agree)”


Plan to take advantage of pre-configured “kits” of school supplies

offered by child’s school or PTA

32%#

Pre-configured school kits


Devices play a role in the shopping journey, but people click more for information than to buySmartphones are used more often than tablets

51%

55%

56%

61%

64%

Compare products to similar products

Access a mobile shopping app

Get/download discounts, coupons,sale information

Get price information

Access a retailer's website

Source: Deloitte in-house surveyNote: Among shoppers who own a smartphone (n = 1148) or a tablet (n = 985); multi select question

30%

53%

53%

54%

61%

71%

Compare products to similar products

Make a purchase

Shop online

Get price information

Access a retailer's website

53%

Mob

ileTa

ble

t


Social media usage will increase, but will remain transactional

“Do you plan to use social media sites to assist in your Back-to-School shopping?*”

13%

16%

16%

30%

44%

45%

64%

74%

To watch a retail/product video

To post to or view virtual imageboards

To post comments, reviews orfeedback

To visit retailers' pages on socialnetworking sites

To read reviews/recommendations

To browse products

To receive a coupon

To view promotions/ads

“With regard to your Back-to-School shopping, how do you plan to use social media sites? #”

Source: Deloitte in-house survey Notes: *Sample size (N) = 1200 #Multi select question (n = 302)

Most will use social to find promotions, receive coupons, and browse products

25%


Shoppers do their research before going to the store and also look for perks when shopping online

63%

61%

42%

40%

30%

Purchase from online retailers who offer free shipping

Research online before purchasing products in thephysical store

When shopping online, I prefer loyalty programs thatprovide faster or cheaper shipping than product

discounts

Prefer to purchase from retailers offering BOPUS* or buyonline/return to store

I will shop in stores less this season because BOPUSoption is more convenient 2016

“Please indicate your level of agreement with the following statements (% who agree or somewhat agree)”

Source: Deloitte in-house surveyNote: Sample size (N) = 1200; *BOPUS = buy online/pick-up in-store


Discount and traditional department stores will remain the most preferred back-to-school shopping destinations in 2016

“In what types of retail environments do you plan to do your back-to-school shopping?”

Source: Deloitte in-house surveyNote: Sample size (N) = 1200, multi select question

2%

6%

10%

10%

11%

12%

15%

19%

21%

24%

25%

35%

37%

42%

54%

57%

Home furnishings and housewares stores

Catalogs

Home electronics stores

Off-price stores

Bookstores

Drug stores

Consignment shops/thrift stores

Fast fashion apparel retailers

Supermarkets

Warehouse membership clubs

Specialty clothing stores

Online sites

Dollar stores

Office supply/technology stores

Traditional department stores

Discount/value department stores


Payment type varies by household income

60%

53%

49%

7%

5%

Debit Card

Credit Card

Cash/Check

Gift Card

Digitalpayment

“Which of the following payment methods will you likely use for your back-to-school purchases?”

Source: Deloitte in-house surveyNote: Sample size (N) = 1200; multi select question

48

% 53

%

68

%

58

%

58

%

47

%

42

%

41

%

56

%

7%

5% 8%

2% 4% 7%

Boomers GenXers Millennials6

4% 71

%

68

%

57

%

28

%

32

% 44

% 57

%

61

% 72

%

65

%

61

%

41

%

43

%

38

%

9%

6% 9%

5% 7%

6%

5%

5%

4% 6%

<$25,000 $25,000 - $49,999 $50,000 - $74,999 $75,000 – 99,999 $100,000+

Debit card Credit card Cash/check Gift card Digital payment

Overall Generation

Household income

Digital payment penetration remains low


About the survey

The survey was commissioned by Deloitte and conducted online by an independent research company between June 22 – 27, 2016. The survey polled a sample of 1,200 parents of school-aged children and has a margin of error for the entire sample of plus or minus three percentage points.

All respondents had at least one child attending school in grades K – 12 this fall.

As used in this document, "Deloitte" means Deloitte LLP and its subsidiaries. Please see www.deloitte.com/us/about for a detailed description of the legal structure of Deloitte LLP and its subsidiaries. Certain services may not be available to attest clients under the rules and regulations of public accounting.

http://www.deloitte.com/us/about

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Back-to-School Survey 2016